JANSY PACKAGING LLC.

Jansy Packaging, LLC of Congers, NY has been recapitalized by Eureka Growth Capital of Philadelphia, PA. Jansy’s management team has retained a significant equity stake in the Company. Sperry, Mitchell & Company initiated this transaction, assisted in the negotiations, and served as exclusive financial advisor to Jansy.

Overview

Jansy Packaging (“Jansy” www.jansypkg.com) is a leading full-service provider of packaging design, engineering, and production services. Jansy combines award-winning design and development capabilities with full-range production resources to offer high-impact packaging solutions at cost-effective rates. The Company serves a rapidly growing list of blue-chip consumer brands, including Procter & Gamble, LG, Limited Brands, Oakley, NARS Cosmetics, and Jawbone. Jansy maintains offices in the New York, Chicago, and Los Angeles metro areas.

Eureka Growth Capital (www.eurekagrowth.com) is a private equity firm focused on investing in and building niche-market leaders at the lower-end of the middle market. Eureka’s core focus is partnering with exceptional management teams to acquire businesses with up to $75 million in revenue across industry segments in which Eureka brings significant experience and operating resources.

Situation

Jansy was founded as a provider of outsourced, value-added specialty packaging solutions for consumer products companies. In 2012, Jansy acquired Burgo USA, a leading packaging design and engineering firm with an impressive roster of clients. The acquisition transformed Jansy into a leading turnkey consumer packaging platform that combines design and engineering services with full-scale production capabilities.

Following the acquisition of Burgo, Jansy’s ownership included a passive individual investor and three Jansy management team members.

The acquisition of Burgo was transformative. Specifically, Jansy demonstrated considerable success transitioning Burgo design-based engagements into full-scale design-to-production relationships, with significant recurring revenue potential. However, while sales and profits flourished, Jansy struggled to integrate, standardize and streamline the two companies’ back-office support functions, including IT systems and finance.

Jansy engaged us in the winter of 2014 to explore a potential sale. The goal was to provide liquidity to the passive investor, while also allowing the management team owners to continue to grow the Company with a well-capitalized and growth-oriented partner that could assist with the back-office integration process.

Sperry Mitchell Solution

We tailor our approach to match our client’s needs. We coordinated a targeted marketing effort focused on potential buyers that understood packaging and business services companies and could assist the Company with systems implementations and back-office integration efforts. We received strong interest from numerous parties, allowing management to choose the partner that was the best fit from a strategic and cultural perspective. Eureka Growth ultimately appointed a key member of its firm to be a full-time CFO at the Company, to help manage system integration projects.

We establish a timeline and keep the process on track to reach the target closing date. In most transactions, the due diligence and legal documentation processes can be onerous and time-consuming. In this case, given the recent Burgo acquisition and the lack of integrated IT and accounting systems, the data-collection process was particularly arduous. Throughout due diligence, we worked diligently with Jansy’s staff to produce the data and manage the flow of information to keep the deal on a tight timeline. These efforts kept the buyer and seller focused on the “big picture” items and ensured the process moved smoothly and swiftly to a timely closing.